Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic

Marketing: A

Global−Managerial

Approach, 14/e

5. Demographic
   Dimensions of Global
   Consumer Markets

Text © The McGraw−Hill

Companies, 2002

138 Chapter 5

Notice that some of the most populated areas in Exhibit 5-3 are not growing the

fastest. The population of New York, for example, grew at less than 6 percent dur-

ing the last decade. Other states like Connecticut and Pennsylvania grew less than

4 percent. In fact, the West is growing at almost four times the rate of the Northeast.

These different rates of growth are especially important to marketers. Sudden

growth in one area may create a demand for many new shopping centers—while

retailers in declining areas face tougher competition for a smaller number of cus-

tomers. In growing areas, demand may increase so rapidly that profits may be good

even in poorly planned facilities.

These maps summarize state-level data to give the big picture. However, much more

detailed population data is available. You can obtain detailed census data—or updated

estimates—for very small geographic areas. Just as we mapped population changes at

the state level, a local marketer can divide a big metropolitan area into many smaller

areas to see where the action is. As this decade continues, census data may become

outdated—but by then local and state government planning groups may be able to

provide updates.

Despite the large increases, the rateof population growth in the U.S. has slowed

dramatically—to about 1 percent a year during the last decade. In fact, many U.S.

marketers who enjoyed rapid and profitable growth in the 1960s and 1970s know

that the domestic picnic is over. They now turn to international markets where pop-

ulation—and sales revenues—continue to grow.

In the U.S., most of our future growth is expected to come from immigration. In

fact, even now the total U.S. population would start to decline if immigration stopped.

Let’s look at some of these trends—and what they mean to marketing managers.^9

Population will keep
growing, but...

Exhibit 5-4 Percent Change in Population by State, 1990- 2000

WA

21.1

OR

20.4

CA

13.8

NV

66.3 UT

29.6

AZ

40.0

AK

14.0

HI

9.3

Percent change in population:

NM

20.1

CO

30.6

WY

8.9

ID

28.5

MT

12.9

ND

0.5

SD

8.5

NE

8.4

KS

8.5

OK

9.7

TX

22.8 LA5.9

AR

13.7

MO

9.3

IA

5.4

MN

12.4

WI

9.6

IL

8.6

IN

9.7

MI

6.9

OH

4.7

KY

9.7

TN

16.7

MS

10.5

AL

10.1

GA

26.4

SC

15.1

FL

23.5

NC

21.4

VA

14.4

WV

0.8

PA

3.4

NY

5.5

ME

3.8

11.4 (NH)

5.5 (MA)

4.5 (RI)

3.6 (CT)

8.9 (NJ)

10.8 (MD)

17.6 (DE)

5.7 (DC)

8.2 (VT)

0 –13.1 13.2–26.3 26.4–39.5 (two times U.S. rate) 39.6 or more (three times U.S. rate)